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The geopolitical and market bogeymen of the moment – Kim Jong Un, Vladimir Putin, tariffs, cyber warfare – are riding tall in the saddle.
That’s sparked something of a “flight to safety,” which ignited a bit of an uptick in demand for Treasuries this …

If targeting political extremes generates the most profit, then that’s what these corporations will pursue.As many of you know, oftwominds.com was falsely labeled propaganda by the propaganda operation known as ProporNot back in 201…

This weekend, I’d like to take a slightly nostalgic trip down Memory Lane, into the dark, swirling menacing pool that was the dawn of the Internet. OK, that sentence didn’t end up quite where I meant it to.

When I started my newsletter business in October of 2000, I decided to have a little fun with it on this new thing called the World Wide Web, aka “the internet.” If you, like me, are of a certain age, you remember well that we started every web address with the ubiquitous www.

WSJ: “Ten Years After the Bear Stearns Bailout, Nobody Thinks It Would Happen Again.” Myriad changes to the financial structure have seemingly safeguarded the financial system from another 2008-style crisis. The big Wall Street financial institutions…

It has been 2 months since I last had a chance to respond to reader comments. This seems like a good time to pause and take the opportunity to do so again. Keep them coming!

Today, since I’m in a contrarian mood, I thought I’d focus on ever-so-kindly replying to people who don’t see eye to eye with me…

I really enjoy these exchanges. They get my creative analytical juices flowing, and force me to consider alternative viewpoints which I may not have done initially.

In fact, the more rebuttals I write, the kinder I feel! Which is why I’ve decided to report a special gold opportunity today (continuing our prickly theme with an investment that is the very definition of contrarian right now).

If indeed this inflation hysteria has passed, its peak was surely late January. Even the stock market liquidations that showed up at that time were classified under that narrative. The economy was so good, it was bad; the Fed would be forced by rapid economic acceleration to speed themselves up before that acceleration got out…

Silver Prices Are Surging; Here’s Why They Won’t Slow Down Soon

Silver prices are on the rise, and historic data shows that this could be just the beginning for this rally…

The Federal Reserve’s tightening monetary policy is one of the silver price catalysts that’s helped start this latest rally.

Silver is already 5.5% higher since the Fed’s Dec. 13 decision to hike interest rates for the third time this year. And if this rally is anything like past end-of-year rallies, then we may have only seen a third of the possible gains we’ll make by the end of February.

What’s more, precious metals are becoming divorced from rising interest rates, which means their growth potential isn’t bogged down by the Fed’s policies.

Liquidity moves markets!

You Have to See It to Believe It: The Night Trader’s most powerful tool tells him exactly which stocks are set to go up tomorrow, the next day, the day after that, and beyond. And it is rarely ever wrong. Click here to learn more…

It makes sense. Consider that Trump’s tax cuts are expected to add $1.5 trillion to the country’s debt over the next 10 years, according to the CBO. That gives silver investors a reason to bet against the dollar.

Today, I’ll show you just how high silver prices in 2018 can go. But first let’s look at the silver price movement from last week…

Why the Price of Silver Jumped Ahead of the Holidays

It was a flat week for silver until the last trading day before the Christmas holidays.

Silver began on Tuesday, Dec. 19, with some lackluster action, even as the dollar was retreating. The DXY stayed below 93.45, and silver moved quietly sideways, opening at $16.16 and traveling slowly downwards to end at $16.12.

On Wednesday, the DXY clung to 93.3. Silver managed to open a little higher but again moved essentially sideways. Only by late afternoon did the gray metal weaken. At the 5:00 p.m. New York bell, the price of silver had fallen slightly to close at $16.16.

Thursday brought a slight gain in the U.S. Dollar Index, which closed at 93.35. That motivated silver sellers. The metal began New York trading at $16.11 and grew to $16.21 by mid-morning, but gave that all back to end the day at $16.10.

Here’s how the DXY moved over the past five days, where you can see the DXY decline that helped boost silver prices…

On the Friday before the Christmas holiday, action returned to the silver markets.

At mid-morning, the DXY popped to test the 93.50 level but quickly retreated to 93.35. That was silver’s cue to rally. Silver prices opened at $16.18 then jumped to $16.38 by noon. Silver eventually closed at $16.37.

On Dec. 26, silver rallied further even as the dollar index made another short-lived attempt to rally. Silver opened higher still at $16.44 and gained steadily through the day to close at $16.52.

And finally, on Tuesday, Dec. 27, the DXY weakened to test the 93 level. That pushed silver higher yet. It began New York trading at $16.55 and by late morning had rallied to $16.69, a level it last saw about a month earlier.

Now that silver prices are at a December high and approaching their highs from November, I think silver is ready to rise to a whole new level. Here’s my silver price prediction to start 2018…

Where Silver Prices Are Heading Next

After a healthy week that pulled silver about 4% higher, let’s now examine the action to make some educated guesses about where we might be headed now.

First, let’s look at the DXY’s movement since July…

We remain at the threshold that could signal a new sell-off in the dollar. The technical head-and-shoulders price pattern I recently described – underlined in green – is now completed with the “right shoulder” in place.

We now have to watch for a distinct break down below 93, then watch for it to fall to the 91.50 level. The dollar’s momentum is clearly negative, so odds are good that lower is more likely.

Second, we’ve seen a tremendous rise from the mid-December silver price lows near $15.70.

Even though silver prices are trending up, the 50-day level could act as a bit of resistance. So it wouldn’t surprise me to see silver pull back at least a bit rather soon.

But that will only be temporary. The rally we saw that began in July could be a great template for how the current one plays out. You can see silver prices saw a pullback in early August before launching even higher into September.

It took silver to $18 for a nearly 17% rally in two months. I think we could see very similar action this time around.

That would bring silver up to $18 by the second half of February and represent a 15% gain from two weeks ago.

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Wall Street Examiner Disclosure:Lee Adler, The Wall Street Examiner reposts third party content with the permission of the publisher. I am a contractor for Money Map Press, publisher of Money Morning, Sure Money, and other information products. I curate posts here on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. Some of the content includes the original publisher's promotional messages. In some cases I receive promotional consideration on a contingent basis, when paid subscriptions result. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler, unless authored by me, under my byline. No endorsement of third party content is either expressed or implied by posting the content. Do your own due diligence when considering the offerings of information providers.

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